Research In Internal Audit Of Credit Operations In Commercial Banks

Although commercial banks are continuously improving their financial products and service,credit business has been the core business and main profit source since long.so the key point of management for commercial banks is to guard against the credit risk.Since 2004, after the release of enterprise overall risk management.commercial banks give vital importance to their roles in the management of credit operations and the participation of other departments in risk management. However, cases as fraud and irregular operatons in creidt business arises endlessly in recent years. Risks should have been identified by internal audit management which should have been prevented further loss.But owing to its falling down on its job, risks were discovered by external regulators. The main reason for the risks of credit operation internal audit is that many of its own problems prevent it from taking actions. So it is very important to do research in internal audit of credit operations in commercial banks.This article expounds on theories about commercial banks credit business,risk management and internal audit.On this basis, it analyzes the present status of internal audit of credit operations in commercial banks.We found some problems about internal audit of credit operations of commercial banks as follows:lack of professional evaluation model of internal audit of credit business in commercial banks.imperfect internal audit organization, short of participation of internal audit in creidt risk management, obsolete methods unreasonable staffing of internal audit. After analysis of the importance of evaluating of credit business from internal audit, we focus on the construction of evaluation model of internal audit of credit business in commercial banks, in which the internal audit staff evaluate the credit operations. Meanwhile,we come up with suggestions about how to strengthen the internal audit of credit business in commercial banks. At the last part, we applied the evaluation model built here to HF bank. The result about credit operation status of HF is 78.714 scores. The corresponding evaluation class is General. Then we put forward countermeasures and suggestions about how to strengthen the internal audit of credit business in HF bank according to the results.